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Dec 9 (Reuters) - U.S. independent oil refiner Phillips 66 said it lowered its capital budget for 2017 by about 25 percent to $2.7 billion.
Phillips 66, which had earmarked a budget of $3.6 billion for 2016, said in October it expected its 2017 capital spending to be “less than $3 billion”.
The company, which has over 15 refineries, said it also planned to invest $905 million for “reliability, safety and environmental projects”.
“The reduction in capital spending from prior years reflects that fewer projects meet our return thresholds in the current business environment,” CEO Greg Garland said in a statement.
Refiners including Marathon Petroleum and Phillips 66 are shelving projects and tightening budgets as a global glut of diesel and gasoline erodes profits and eats into refining margins. (Reporting by John Benny in Bengaluru; Editing by Savio D‘Souza)